WOS of a company investing in another WOS

Shivaram (Service) (81 Points)

18 November 2008  

Dear Members,

A company "A' (indian holding company) has two WOS (foreign companies - B & C).  Can Company B invest in equity of Company C?  If so, whether any FEMA compliance need to be adhered to by Company 'A' ,as it will no more be holding 100% in Company C?

Your guidance in this regard will be appreciated.

Regards

SV